As the dollar drops gold reaches $975 - a new record (MarketWatch) (29-02-2008)

NEW YORK (MarketWatch) -- Gold futures closed with a gain on Thursday, reaching a fresh record high of $975 in after-hours trading, as the dollar plunged to a new low against the euro.

Gold for April delivery rose by $6.50 to end regular trading at $967.50 an ounce on the New York Mercantile Exchange.

In after-hours, electronic trading, the contract surged to a record of $975 an ounce, surpassing the $970 high hit in regular trading.

On Wednesday, gold rose $12.10, or 1.3%, to $961.0 an ounce.

Weakness in the U.S. dollar boosted gold's investment appeal. Gold, like many commodities, is denominated in dollars, and a lower U.S. currency makes it more affordable in other currencies.

Source: MarketWatch